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Saturday, March 21, 2009

Weekly Analysis

KLCI Daily Chart

KLCI shows a rebound in progress. If it can go above 880, then the rising wedge formation may be invalid. If the rising wedge formation is invalid, it could mean that KLCI is trap within the trading range 830-930. Situation keeps changing, with the higher probability of breaking 800.

Looking at the various sectors in KLSE:

Malaysia

Longterm

Midterm

Shorterm

KLCI

Down

Down

Neutral (+)

Finance

Down

Down

Down

Construction

Down

Down

Neutral (+)

Plantation

Down

Neutral

Neutral

Property

Down

Down

Down

Mesdaq

Down

Down

Down

2nd Board

Down

Down

Down

Pay attention to the plantation sector. It may stage a rally if the cpo breaks above RM2,000. Is commodity price going to improve in this recession climate? Logically, I don't think so. But we cannot say on what the irrational traders will do. Anyhow, IOICorp and KLK CW can be a good play if the rally happens.

Looking at worldwide markets:

World

Longterm

Midterm

Shorterm

S&P500

Down

Down

Neutral

DJI

Down

Down

Neutral

NasdaqComp

Down

Down

Neutral

Nikkei 225

Down

Down

Neutral

Kospi

Down

Neutral (+)

Up (+)

SSECI

Down

Neutral

Up (+)

HSI

Down

Down

Neutral

TWII

Down

Neutral

Up

STI

Down

Down

Neutral

SENSEX

Down

Down

Neutral

FTSE

Down

Down

Neutral

DAX

Down

Down

Neutral

I'm not sure yet whether the market will plunge when the new toxic plan is unveil next week.